Nike quarter earnings

Note: This section contains information in English only.
Source: Dukascopy Bank SA
NIKE, Inc. reported its Q3 FY2025 results, revealing a 9% year-over-year drop in revenues, totaling $11.3 billion, with a 7% decrease on a currency-neutral basis. The decline was driven by weaker sales across both NIKE Direct and wholesale channels. NIKE Direct, which includes digital and retail operations, saw a 12% decrease in revenues to $4.7 billion, primarily due to a 15% drop in NIKE Brand Digital sales and a 2% decrease in sales from NIKE-owned stores. Wholesale revenues were down 7% to $6.2 billion.

Gross margin fell by 330 basis points to 41.5%, impacted by higher discounts, increased inventory obsolescence reserves, higher product costs, and changes in the channel mix. NIKE's net income decreased 32% to $0.8 billion, with diluted earnings per share dropping 30% to $0.54. The company also saw a lower effective tax rate of 5.9%, driven by a one-time, non-cash deferred tax benefit related to U.S. tax regulations on foreign currency.



On the balance sheet, NIKE reported inventories of $7.5 billion, down 2%, and cash and equivalents of $10.4 billion. The company returned $1.1 billion to shareholders through dividends of $594 million (up 6% from last year) and share repurchases totaling $499 million. Since June 2022, NIKE has repurchased 119.3 million shares for approximately $11.8 billion.

Despite the challenges, NIKE's leadership remains optimistic about the future, with President and CEO Elliott Hill highlighting progress in the company's "Win Now" strategy, including athlete storytelling and performance products. CFO Matthew Friend confirmed that the outlook for the second half of FY2025 remains consistent, with a focus on product innovation and reigniting brand momentum.

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